Montana minimum wage by employer type
| Employer type | Rate (2026) | Notes |
|---|---|---|
| FLSA-covered businesses (most employers) | $10.85/hr | Effective January 1, 2026 through December 31, 2026 |
| Non-FLSA businesses, gross sales ≤$110,000/yr | $4.00/hr | Narrow carve-out; most businesses do not qualify |
No tip credit, no meal credit, no training wage
Montana is one of only eight states that ban the tip credit entirely. Tipped workers — servers, bartenders, and other service employees — must receive the full $10.85/hr as direct wages from their employer. Tips are supplementary; they cannot reduce the employer's wage obligation below the state minimum. Montana similarly has no meal credit and no training wage for new hires or younger workers.
The $4.00/hr non-FLSA carve-out
Montana allows businesses not covered by the federal FLSA with gross annual sales of $110,000 or less to pay a minimum wage of $4.00 per hour. This provision is narrow in practice: FLSA enterprise coverage applies to businesses with annual gross sales of $500,000 or more, so a business with sales between $110,001 and $499,999 falls into a middle band that is not clearly addressed in this carve-out. The $10.85/hr rate applies to all FLSA-covered employees; the $4.00 rate is relevant only to genuine non-FLSA micro-businesses.
CPI indexing mechanism
Montana adjusts its minimum wage annually on January 1. The Montana Department of Labor and Industry calculates the CPI adjustment no later than September 30 and rounds to the nearest $0.05. The rate cannot decrease. January 1 annually; DLI calculates CPI adjustment no later than September 30 and rounds to nearest $0.05.
Worked examples
Example 1: tipped worker at Montana minimum wage (no tip credit)
Example 2: standard non-tipped employee
What this does not determine
- Whether a specific employer qualifies for the non-FLSA/$110,000 gross-sales carve-out — requires legal analysis of FLSA and Montana law coverage.
- Whether specific exemptions (certain agricultural workers, domestic workers) apply to a given employment relationship.
- Montana final-pay rules — discharged employees are generally owed wages immediately under §39-3-205/206 MCA, with penalties up to 110% for late payment. Verify current rules at erd.dli.mt.gov.
Montana statute and enforcement
Montana's minimum wage is codified in the Montana Wage and Hour Act, Title 39 MCA (§39-3-406 MCA in particular). The Montana Department of Labor and Industry, Employment Relations Division (erd.dli.mt.gov) enforces wage and hour laws. Employees who have not been paid the minimum wage may file a complaint with the ERD at erd.dli.mt.gov. Montana imposes late-payment penalties of up to 110% of unpaid wages for employers who fail to pay final wages on time.
Montana vs. neighboring Wyoming
Montana's 2026 minimum wage of $10.85/hr, set by CPI indexing, significantly exceeds neighboring Wyoming, which has no state minimum wage statute above the federal FLSA floor ($7.25/hr). Montana's no-tip-credit rule also contrasts sharply with Wyoming, which follows the federal tip-credit model. The difference in worker protections between the two states is among the largest of any neighboring state pair in the Mountain West.
Sources and verification
The rate, effective date, through date, and no-tip-credit rule were verified from the Montana Department of Labor and Industry, Employment Relations Division — State Minimum Wage page (erd.dli.mt.gov). The statute reference is Title 39 MCA and §39-3-406 MCA. See the site's methodology for how rates are verified before publication.